How to data bind directive that wraps an element in angular

I have a directive that creates a wrapper for an element. The problem with this is the "is-selected" class does not toggle based on the myValue value. I feel like it has something to do with how I'm implenenting ng-class with angular element but I'm not sure how to fix this. Any ideas??

Basically I want the wrapping element to have a class based on the the child model value.